FEATURED COMPANIES

This is the 8th edition of the report 'Domestic Garden Landscaping Materials Market Report – UK 2015-2019 Analysis'. Incorporating original input and primary research, it represents an up-to-date and informed review of the domestic market and includes a review of recent market trends and forecasts over the next few years.

This market is highly dependent on the weather as well as the economic conditions. Historically, the gardening industry has coped well with economic downturns and not suffered as badly as some other sectors. However, the length and severity of the latest economic downturn did appear to negatively impact on the market, particularly in the
hard landscaping sector, although economic prospects and garden product demand are now improving and the market saw strong growth during 2014.

FEATURED COMPANIES

Key product sectors in the UK domestic landscaping materials market market are horticulture, which accounts for just below half of the market by value, hard landscaping and garden decoration. Annual growth rates in the market are heavily influenced by prevailing weather conditions and market performance fluctuations reflect this variability, as seen in 2012 and 2014 in particular. In addition, the performance of the UK economy impacts on the market, although the market tends to cope well with economic downturns and has not suffered as badly as some other consumer markets. Since the start of the economic downturn, sectors of the landscaping materials market have performed differently, with sectors such as paving and decking declining, whilst sectors associated with ‘grow your own’ (GYO) experienced overall growth.

The overall market was volatile during 2008-12 due to the impact of the economic downturn and weather conditions (notably poor in 2012), but recovered in 2013 and grew by an estimated 7% in 2014 - mainly due to favourable weather, an improving economy and increasing consumer confidence & spending. Assuming ‘normal’ weather patterns, the market is expected to experience growth to 2019. Key factors influencing the market include the housing market, consumer confidence & spending, and levels of interest in gardening as a hobby or to grow produce, as well as the trend for gardens being seen as an extension to the home and al fresco dining, the mature structure of most sectors and the growth of the Internet that tends to drive down average prices and increase price competition in the market.

Distribution of landscaping material is complex and fragmented, consisting of a very wide range of products distributed through a range of channels. Key channels include DIY multiples, garden centres (particularly for horticulture), builders merchants (hard landscaping) and mail order & Internet (a channel gaining share). Internet retailing is expected to continue gaining share as consumers seek greater value for money and the convenience of home shopping. Garden centres are increasingly addressing this issue and it is likely that those companies prepared to evolve their formats and develop their offering will perform better in the future. Garden centres are increasingly being seen as destination centres and have expanded their product ranges to more weather proof their businesses.

Forecasting future market performance is difficult at this time due to events unfolding in the Eurozone and the forthcoming General Election, as well as the market dependency on the weather. However, house building and house moving levels have improved in recent years and are forecast to continue. As the economy and consumer spending grows it is expected that the market will benefit from pent up demand for landscaping projects that have been deferred during the economic downturn. Also, some product sectors saw consumer downgrading in their product selection, which has reversed more recently and is expected to continue as disposable income levels increase. Trends that may benefit the market include increasing demand for artificial grass, permeable paving and other environmental friendly options (e.g. solar lighting) and container & vertical gardening. Conversely, sectors such as the declining decking market are forecast to lose share in the overall market mix.